The Catholic Diocese of Rockford

Lay Employee Pension Plan Summary Plan Document

Revised January 1, 2017

Introduction Revocation must be in writing and delivered to the Plan Administrator at least 30 days prior to the January 1 on The Catholic Diocese of Rockford Lay Pension Plan which it is to take effect. was created effective October 1, 1974. It covers regular full time lay employees of the Catholic Diocese of An employee who is a participant may elect to Rockford. The Plan is funded entirely by employer discontinue participation for any Plan year. An election contributions. Employees do not contribute to the Plan. to discontinue participation must be submitted to the Plan Administrator in writing at least 30 days prior to The Plan was created with the intention that it continue January 1. indefinitely. However, the Catholic Diocese of Rockford has the right to terminate, modify, alter or Contributions amend it; or to merge or consolidate it with any other plan. Employer contributions made to the Plan on a participant’s behalf are as follows: The Plan was created to assist covered employees in financial preparation for retirement. The combination a) less than 10 years of full-time employment of the Plan’s benefits and Social Security (funded by …………..…………..…. 3% of gross salary matching employee and employer contributions under the Federal Insurance Contribution Act (FICA) will b) 10 to 15 years of full-time employment provide a base for planning a comfortable retirement. …………...……………... 5% of gross salary The 403(b) Retirement Plan, provided under a program separate from this Plan can be an excellent means to c) more than 15 years of full-time employment supplement the Plan’s benefits and should be …...... 6% of gross salary considered by those interested in tax-advantaged retirement savings. However, no contributions are made for a participant who is on a leave of absence or who has elected not to This is a summary plan description of The Catholic participate. Diocese of Rockford Lay Pension Plan. It is not the official Plan document and cannot be relied upon for Employees do not contribute to the Plan. definitive answers to all questions. A copy of the official document is available for inspection by any Benefit Accumulation employee or his/her representative during regular business hours at the Diocesan Lay Pension Office of Contributions to the Plan are held in a trust fund that is the Diocese located at 555 Colman Center Drive, invested under the supervision of the Trustees. The Rockford, Illinois. trust fund is invested as individual accounts. Contributions are credited to the participant’s account, In any conflict between this summary and the official and, daily, earnings are credited to his/her account. Plan document, the official Plan document will control.

Eligibility Vesting

An employee becomes eligible to be a participant in the If a participant ceases to be an employee for reasons Plan when he/she completes 12 months of continuous other than death or retirement at a normal, early, or service provided he/she is age 25 or older. postponed retirement date, and if he/she has fewer than 7 full years of continuous service when his/her Participation commences automatically unless the employment terminates, he/she will forfeit a portion of employee elects not to become a participant. An election his/her account. The portion of his/her account that to decline participation must be submitted to the Plan he/she does not forfeit is referred to as the vested Administrator in writing at least 30 days prior to the date portion of his/her account. The portion vested depends participation otherwise would commence. An employee on the number of his/her full-time years of continuous who declines participation may revoke this decision and service as shown on the following table. become a participant on a subsequent January 1. A participant’s account is fully (100%) vested if his/her the employee retires. Accordingly, the Plan provided employment terminates because of death or because of that distribution of a participant’s account begin the retirement at normal, early, or postponed retirement later of April 1 following the close of the calendar year age. in which a retired person reaches age 70½, or April 1 following the close of the calendar year in which a Full Years of person retires. Portion Portion Continuous Vested Forfeited Service An employee, upon termination of employment, is Less than 3 none 100% required to complete the Notice to Administrator of 3 20% 80% Participant’s Leaving Plan form. This form should be 4 40% 60% completed by all participants leaving the Plan as a result 5 60% 40% of termination, retirement, or disability. Upon death, a 6 80% 20% copy of the Death Certificate should be attached to the 7 100% none form. The completed form should be forwarded to the Diocesan Lay Pension Office.

A portion of a participant’s account may be forfeited Forfeitures under certain circumstances (as described under “Vesting” below), in which case only the vested Forfeited pension benefits may be used as portion of his/her account becomes distributable. administrative fees and/or remain in the Pension Plan portfolio to be reallocated to the pension accounts of the Beneficiary Designation other employees.

The participant shall have the right to change the In-Service Transfer designated beneficiary of the Plan at any time or times by filing a new designation with the Plan Effective July 1, 2014, a full or partial in-service Administrator on the form provided, but such transfer is available to an employee who is at least age designation shall be effective and acted upon only if 62 and is fully vested. In-service transfers are limited received by the Plan Administrator prior to the to once per quarter and must be a tax deferred rollover participant’s death. to an Eligible Retirement Plan (i.e. IRA).

Distribution of Accounts Loans

Generally, a participant’s account becomes A participant may not borrow from the Plan nor may distributable on his/her distribution date (i.e., his/her his/her interest in the Plan be pledged as collateral for normal retirement date unless an early, disability, or a loan from another party. postponed retirement date applies to him/her). However, if a participant dies prior to his/her Definitions distribution date, his/her account becomes distributable to his/her beneficiary at the time of his/her death. These terms are defined as follows for purposes of this summary plan description. Distribution can only be made in a lump sum to a qualified IRA, participant or beneficiary. “Beneficiary” – the person or persons designated by a participant to receive his/her benefits under the Plan The federal law governing the Plan requires the should he/she die before all of his/her benefits have distribution of benefits begin April 1 of the calendar been paid out. Corporations and trusts, as well as year following the calendar year in which the employee natural persons, may be a Beneficiary. The designation attains age 70½. In the case of a church plan, the must be made in writing. A form may be obtained from required beginning date shall be the later of the date the employer or by contacting the Diocesan Lay determined under the preceding sentence, or April 1 of Pension Office. the calendar year following the calendar year in which “Continuous Service” – a period of service to an “Participant” – an employee who has met the eligibility employer without break. Continuous Service is requirements of the Plan and who is accruing benefits measured from last date of hire. Transfer of under the Plan. employment from one diocesan employer to another does not cause a break in service, provided service to “Plan” – the Catholic Diocese of Rockford Lay Pension the new employer commences within a reasonable time Plan. after service to the prior employer ceases. Generally, if a break in service does not exceed the period of a “Plan Year” – a 12-month period beginning January 1. participant’s full-time employment, this condition is met. Further, a leave of absence granted by an employer “Summary” – this summary plan description of the is included in Continuous Service if the leave is granted Plan. under Plan rules. Generally, Plan rules permit leaves of absence for required service in the Armed Forces, “Trustees” – collectively, the persons authorized to sickness or disability, and similar purposes, provided manage the Plan. The Trustees are the Bishop or his the leave does not extend for more than 24 consecutive delegate, the President of the Priests’ Senate, the Vice months, or, in the case of required service in the Armed President of the Clergy Relief Society, the Forces, does not extend for more than 6 months beyond Representative of Women Religious, and from five to discharge from Armed Forces service. nine representatives appointed by the Bishop.

“Distribution Date” – the date of payment of a participant’s benefits. Generally, a participant’s Questions about eligibility and provisions Distribution Date is his/her normal retirement date; of the plan should be directed to: unless an early retirement, disability, or a postponed retirement date applies. Distributions of Participants’ accounts are usually made within 60 days after the close Matt Young of the quarter and contributions are collected. LPL Financial Employers are required to remit contributions to the Plan 2807 Charles Street by the end of the month following the quarter ending Rockford, IL 61108 date. Phone: (815) 394-1520

“Earnings” – a participant’s gross compensation Toll Free: (877) 621-2784 reported on his W-2 without regard to deductions for a Fax: (815) 394-3909 403(b) Retirement Plan account. e-mail: [email protected]

“Employee” – a regular full-time lay employee of a Diocesan employer. Regular full-time employment is 35 All transfer and withdrawal forms can be mailed, e- hours or more per week for the normal work year. mailed or faxed to Matt Young or Security Benefit directly. Forms demanding medallion signatures are “Employer” – those parishes, schools, and agencies of required to be mailed. the Catholic Diocese of Rockford. Security Benefit “In-Service Transfer” – a Qualified Employee can P.O. Box 55976 transfer a portion or all of his or her fully vested balance Boston, MA 02205-5976 in the pension plan to an Eligible Retirement Plan of the employee’s choosing. A Qualified Employee for this Phone: (800) 747-3942 purpose is one who is at least age 62 at the time of Fax: (816) 701-7626 transfer and is fully vested with the Diocese of Rockford Lay Employee Pension Plan. A Qualified Employee Overnight Delivery: may request an in-service transfer no more than once per 30 Dan Road Suite #55976 calendar quarter. The transfer must be a tax-deferred Canton, MA 02021-2809 rollover to an Eligible Retirement Plan as defined in the Plan document, §6.7(c).